Managed to do my 3 inch squares today for the UK Embellisher Swap Group.
I started with ink jet printable fabric and printed butterflies from Crafty Computer Paper's Vintage Images CD. Cut out the images and laid them on approximately 5" square piece of calico. Layer of stitch and tear underneath, then free motion zig-zagged round the edges. I used a variegated quilting cotton - part of the free gift which came with my sewing machine. Did a finer layer of silver metallic free motion over the purples. Sewed 2 or 4 beads onto the butterflies then cut out to three inches square. Sewed fancy yarn in between the top and a backing layer of calico - trimmed the backing to size then satin stitched around the edge, assisted with a layer of stitch and tear under. I'm pleased with these - definitely better than my charms, which are a bit plain.
Have had a seriously bad back for a week now, so very careful sitting and standing, kept moving around to stop it seizing up.